BUSINESSMAN MICHAEL Smurfit has acquired Gerry Gannon’s stake in the K Club, the Co Kildare golf resort and Ryder Cup venue.
Mr Smurfit is understood to have paid over €40 million for the 49 per cent stake, which will give him full ownership as soon as the legal formalities are completed.
The sale was negotiated through the National Asset Management Agency, which is overseeing loans and assets held by Mr Gannon’s development group.
When he first announced the sale of his stake in the club two years ago, Mr Gannon said: “I cannot expect the taxpayer to fund an exclusive loss-making club in Co Kildare.” He was not available for comment yesterday.
James Meagher, of selling agent HT Meagher O’Reilly and its UK affiliate King Sturge, offered the minority stake for sale at €60 million in a number of overseas markets without success.
The club was bought from the Jefferson Smurfit Group in May 2005 for €115 million. The following year it hosted the Ryder Cup. The purchase also included a redundant paper factory at Clonskeagh which is now owned by one of Mr Gannon’s companies.
The club has been incurring losses for the past five years, losing in excess of €2.5 million last year. Turnover peaked at €22 million in the year after the Ryder Cup and is thought to have slipped to about half that figure because of a fall-off in golfers and reduced green fees.
Although the 560-acre K Club has planning permission for another 85 apartments alongside its luxury hotel and a further 24 townhouses on the Ryder Cup course, it is most unlikely that Mr Smurfit will proceed with these developments because of the poor sales prospects for second homes.
As well as selling his stake in the K Club, Mr Gannon has disposed of 74 acres opposite the main entrance for about €1.3 million.
